Australian Broker Call *Extra* Edition – Nov 23, 2021

Daily Market Reports | Nov 23 2021

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AFP   APE   BWX   CCX   DDH   ELO (2)   EVN   HLA   IPH (2)   JLG   MNY   NUF   PLT   UMG  

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services - Overnight Price: $7.08

Goldman Sachs rates ((JLG)) as Buy (1) -

While Johns Lyng Group has reiterated FY22 guidance, the broker is confident in it’s own estimates, which are 15% ahead on revenue and 18% ahead on earnings (EBITDA).

The broker sees a significant opportunity in strata management, and growth in the annuity style business as usual (BaU) earnings. The latter is expected to be driven by new panel wins and an increasing share of work from existing panels.

Goldman Sachs factors in a $1.50/share valuation premium to account for future M&A. 

The Buy rating and $6.80 target price are unchanged

This report was published on November 18 , 2021.

Target price is $6.80 Current Price is $7.08 Difference: minus $0.28 (current price is over target).
If JLG meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 6.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 0.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.46.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 7.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.57.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit - Overnight Price: $3.31

Shaw and Partners rates ((MNY)) as Buy (1) -

Despite core market lockdowns in the first quarter of FY22, Money3 Corp has delivered a strong update according to Shaw and Partners. The company guided to full year profit after tax of $50m, 6.5% ahead of the broker's forecast, implying 28% growth. 

The broker highlights revenue in the first quarter of $45.5m was up 35% year-on-year, and a strong operating environment plus a number of tailwinds are all good news for the company. Earnings per share forecasts are upgraded 6%, 5% and 4% through to FY24.

The broker continues to find the company conservatively valued. The Buy rating is retained and the target price increases to $4.31 from $4.13.

The report was published on November 18, 2021.

Target price is $4.31 Current Price is $3.31 Difference: $1
If MNY meets the Shaw and Partners target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 13.70 cents and EPS of 23.90 cents.
At the last closing share price the estimated dividend yield is 4.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.85.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 16.00 cents and EPS of 27.80 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.91.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NUF    NUFARM LIMITED

Agriculture - Overnight Price: $4.85

Bell Potter rates ((NUF)) as Buy (1) -

Nufarm's FY21 underlying continuing operations earnings (EBITDA) were broadly in-line with Bell Potter's expectation. The broker feels the impact from a normalisation of domestic conditions will be somewhat offset by recovering acreages in Nth America and Europe.

Management expects price increases and volume growth will help counter margin pressure from increasing COGS as well as global logistics and supply chain challenges. There's also strong demand for crop-protection products due to improved seasonal conditions.

Moreover, the creation of new revenue streams in oils and biofuels should emerge as a theme in FY23 and beyond, points out the analyst.

The Buy rating is unchanged and the target price rises to $5.40 from $5.35.

This report was published on November 18, 2021.

Target price is $5.40 Current Price is $4.85 Difference: $0.55
If NUF meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.55, suggesting upside of 14.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.00 cents and EPS of 21.80 cents.
At the last closing share price the estimated dividend yield is 1.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of N/A.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 7.00 cents and EPS of 24.90 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.1, implying annual growth of 9.3%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 17.9.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE

If you already had your free trial, why not join as a paying subscriber? CLICK HERE

MEMBER LOGIN